SEC to charge Goldman Sachs with Fraud

[Joanne98]

Funny how history repeats itself, but more importantly, how Reagan/Clinton/Bush deregulations have made the follow historical record now comically quasi-legal.

This should take some people back:

RenderQT's diary :: :: SCANDALS: Penn Central Precedents?
Monday, May. 13, 1974
http://www.time.com/...

The Securities and Exchange Commission was only doing what had long been expected last week when it filed civil suits charging that massive fraud preceded the spectacular 1970 bankruptcy of the Penn Central. Even so, the suits—one against twelve former officers and directors of the railroad, headed by onetime Chairman Stuart T. Saunders, and also the accounting firm of Peat, Marwick, Mitchell & Co.; another against the investment firm of Goldman, Sachs & Co.—are unusually significant.

This would also be unusually significant even today, considering now the squid is securely on the face of Washington, D.C.

The SEC is clearly trying to set precedents that would expand its regulatory authority over company directors, the commercial paper market and independent auditors.


Ha! Authority over Goldman Sachs? HOW DARE YOU CHALLENGE YOUR GODS!

Funny thing about the commercial paper market today, especially CDSes, there is no independent auditor because the entire process is off-the-books. So, technically, we have regressed since even the laissez-faire days of the era in question.

Continued>>>
http://www.dailykos.com/storyonly/2010/3/3/842618/-SEC-to-charge-Goldman-Sachs-with-Fraud